Investigation
In the automotive industry, July saw a mix of successes and challenges for Chinese brands BYD and Denza.
BYD, a leading player in the electric vehicle (EV) market, reported a total of 344,296 vehicles sold globally in July, marking a 5.4% increase from the same month last year. However, the company's plug-in hybrid (PHEV) sales have been on a downward trend for four consecutive months.
Despite offering about 10 more PHEV models at an average of 20 to 33% cheaper prices compared to last year, BYD's PHEV sales declined by 22.6% year-over-year in July. This slump can be attributed to changing market demand, competitive pricing pressures, and regulatory environments affecting the Chinese market.
BYD's EV segment, however, managed modest growth, but the sharper fall in PHEV sales and production contributed to an overall pause in BYD's 16-month production growth streak. The company exported 80,737 vehicles in July, a significant 169% increase from the same month last year.
Meanwhile, Denza, BYD's premium brand, saw a 28% decrease in sales in July compared to June. The Denza N9 SUV sold 2,104 units, while the Denza N7 SUV managed to sell 124 units. The Denza D9 MPV sold 8,331 units, and the Denza Z9 sedan sold 816 units.
Yangwang, another luxury brand under BYD, reported a 65% increase in sales from June to July, with 339 vehicles sold. However, this figure represents a 22.8% decrease year-over-year. The Yangwang U7 sedan sold 253 units, and the Yangwang U8 SUV sold 80 units.
Off-road focused brand Fang Cheng Bao (FCB) reported a 25% decrease in sales from June to July, but a staggering 670% increase year-over-year. The FCB Bao 5 SUV sold 4,102 units, and the FCB Bao 8 SUV sold 1,565 units.
The highlight of the month was the reveal of the FCB Ti 3 "Black Myth: Wukong" special edition ahead of its debut.
Despite the mixed results, both BYD and Denza continue to expand their footprint, with BYD recently entering the Pakistani market. The companies are expected to continue adapting to the changing market conditions and consumer preferences to maintain their growth trajectory.
[1] Source: Reuters [2] Source: Bloomberg [3] Source: TechCrunch [4] Source: China Daily
In the conversation about the automotive industry, it's important to note that despite BYD's successful growth in the electric vehicle market, their plug-in hybrid sales have been declining for four consecutive months.
Moreover, Denza, BYD's premium brand, experienced a 28% decrease in sales from July to June, indicating a shift in consumer preferences towards other vehicle types.
